Project C costs $8,000 and will generate net cash inflows of $3,250 before taxes for 5 years. The firm uses straight-line depreciation with no salvage value and is subject to a 30% tax rate. What is the payback period under the assumption that all cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) d. Project D costs $8,000 and will generate sales of $5,400 each year for 5 years. The cash expenditures will be $2,200 per year. The firm uses straight-line depreciation with an estimated salvage value of $750 and has a tax rate of 30%. (1) What is the accounting (book) rate of return based on the original investment? (Round your answer to 2 decimal places.) (2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.) Use the built-in NPV function in Excel to calculate the amounts for projects a through d. (Round your answers to the nearest whole dollar amount.) e1. What is the NPV of project A? Assume that the firm requires a minimum after-tax return of 8% on investment. e2. What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 8% on investment. e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 8% on investment. e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 8% on investment. Just need answer for e3 and e4 thanks!
Answer each independent question, (a) through (e), below.
a. Project A costs $8,000 and will generate annual after-tax net
b. Project B costs $8,000 and will generate after-tax cash inflows of $700 in year 1, $2,200 in year 2, $3,900 in year 3, $3,200 in year 4, and $3,900 in year 5. What is the payback period (in years) for this investment assuming that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.)
c. Project C costs $8,000 and will generate net cash inflows of $3,250 before taxes for 5 years. The firm uses straight-line depreciation with no salvage value and is subject to a 30% tax rate. What is the payback period under the assumption that all cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.)
d. Project D costs $8,000 and will generate sales of $5,400 each year for 5 years. The cash expenditures will be $2,200 per year. The firm uses straight-line depreciation with an estimated salvage value of $750 and has a tax rate of 30%.
(1) What is the accounting (book)
(2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.)
Use the built-in
e1. What is the NPV of project A? Assume that the firm requires a minimum after-tax return of 8% on investment.
e2. What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 8% on investment.
e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 8% on investment.
e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 8% on investment.
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sorry I meant answer e4 is coming back incorrect
by Bartleby Expertanswer ed is coming back incorrect please help
by Bartleby Expert
